On Wednesday, the European Commission announced the initiation of a consumer protection investigation into the Chinese clothing retailer Shein, in partnership with the Consumer Protection Cooperation Network, which unites consumer protection agencies from all EU member states.

This investigation arises from indications of possible violations of EU consumer protection regulations and misleading practices.

Simultaneously with the investigation, the Commission introduced an extensive toolbox designed to tackle the issues associated with Chinese online marketplaces that do not comply with EU standards for quality, environmental responsibility, and fair business practices.

The toolbox specifies the current regulations that are applicable from the moment consumers access a website until the point of purchase, and it suggests new initiatives such as reforms in customs procedures.

Among these initiatives is the proposed Customs Union Reform Package, which seeks to eliminate the duty exemption on low-value parcels and establish a decentralized EU Customs Authority to enhance the coordination of national customs activities.

The toolbox also advocates for the application of artificial intelligence tools for product safety inspections, alongside mystery shopping and testing programs to identify and recall unsafe products, aligning with the recent General Product Safety Regulations.

Furthermore, the communication urges the implementation of measures under the Ecodesign for Sustainable Products Regulation and modifications to the Waste Framework Directive to mitigate the environmental effects of low-value product imports.

The Commission underscored the importance of enforcing existing Digital Services Act guidelines regarding addictive design elements, dark patterns, and misleading discounts, as well as provisions in the Digital Markets Act that address unfair commercial practices, while calling for enhanced collaboration among agencies from EU member states.

In response, Shein indicated its willingness to engage with the investigation and reaffirmed its commitment to fostering trust and safety for European consumers.

The Commission plans to evaluate the effects of the new measures within a year and will release a report detailing the enforcement actions taken.

Meanwhile, an ongoing investigation into another Chinese retailer, Temu, initiated in November, continues, and the EU is considering proposing a Digital Fairness Act to address additional deficiencies in consumer protection regulations.